2020 was a tough year for the beauty industry.
Widespread social distancing mandates and new safety measures established in response to the COVID-19 pandemic forced many spa, salon, and wellness center owners to rethink everyday business operations in order to stay profitable.
Now, with vaccinations under way and beauty businesses working to recover and rebuild in the new year, many business owners are turning their focus to retail sales to help increase revenue in 2021 and beyond—and realizing that private label products offer enormous potential to boost their bottom line.
What are private label beauty products?
Private label products are those developed by a third-party manufacturer but sold under your brand name. In other words, the packaging and labeling is tailored to your business and features your unique logo, branding, and messaging. Products may include anything from shampoo and conditioner to facial cleansers, moisturizing creams, revitalizing serums, and even supplements and hemp-infused formulas.
What are the benefits of selling private label products?
- They are more affordable. One of the biggest benefits of creating a custom branded beauty line is affordability. Private labeling allows you to offer your customers high-quality products but with less overhead and higher profit margins on your end. Because you are selling your own product, you can set the pricing however you wish. Plus, private labeling allows you to put more money in your pocket with every sale and bypass the steep markups that big name brands put on their products. In addition, because minimum order quantities are typically much lower, you avoid the risk of being stuck with products you can’t sell.
- You can customize your product line. Not only are you able to customize the labeling, color scheme, text, and overall branding on the products you choose, but many private label manufacturers offer the option to create your own unique blends and formulas. This is especially attractive for spa and salon owners because it allows you to respond to your customers’ needs and offer something truly unique.
- Faster turnaround. When new trends emerge, private labeling allows you to put the latest “must-have” products into your customers’ hands faster. Instead of waiting months for larger retail brands to formulate, package, and release their products, private label manufacturers typically have early insight about highly anticipated ingredients or products and can fulfill your order quickly; a great example is the recent demand for hand sanitizer products. With companies, such as Onoxa that have the fastest lead time in the industry, you will typically receive your custom branded products within three weeks from the time we get your label design specifications.
- Strengthen customer loyalty. It may sound cliché, but you know your customers better than anyone. You know their styles and preferences, the products they need, and even the products they wish they could find. With private labeling, you can meet those needs and set yourself apart from competitors by offering products they can’t get anywhere else. This will not only help you build a strong customer following, but you will likely see an increase in word-of-mouth referrals to help you grow your business.
Which products should you be selling?
Introducing your own custom branded skin care and beauty line is a smart and simple way to grow your revenue in 2021. When selecting which products to offer, start by thinking about your existing customers and their needs. Is there an opportunity to fulfill a specific need within your customer base? Can you reach even more clients by expanding your retail offerings?
Next, think about your own preferences and values as a business owner. Do you prefer products made with natural and organic ingredients? Products that are cruelty free? Or even products that are 100% vegan? All of these things will impact how you choose the best private label manufacturer.
For spas and wellness centers, top-selling private label products include facial cleansers, moisturizers, and misters, along with beauty masks, scrubs, and serums. Hemp (CBD) skin care products have become increasingly in demand as science continues to uncover new benefits linked to natural compounds in the hemp plant. Likewise, popular add-ons include beauty and wellness supplements as well as men’s skin care products, both of which may open up new and lucrative revenue channels for business owners.
For hair care and salon businesses, private label shampoo and conditioner formulas are a big seller, along with products such as biotin hair serum, lash and brow serum, and even beard oil for men.
Find a private label manufacturer perfect for you.
With 2020 in the rear view and everyday business slowly getting back to normal, private labeling is a great way to help you bounce back and enjoy a profitable new year. We suggest launching your private label skin care line with Onoxa. They are the first-ever online platform for custom branded beauty products, makes it easy to choose the products you want to sell, design your labels, and place an order so you can begin offering unique and affordable beauty and wellness products to you customers.
You can easily get started today by getting a custom sample kit!